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By Ross Moyo
Minister of Mines and Mining Development Winston Chitando, has said some Exclusive Prospecting Orders (epo’s) are now government reservations following technological explorations which exposed dormant epo’s.
The Cabinet Minister made these revelations whilst responding to a question during a question-and-answer session in Parliament, yesterday stating that the State-owned Mining Promotion Company would be responsible for exploration in the reserved areas.
By Ross Moyo
“Government policy and plans are that for EPOs that did not succeed, the Government is going to take some of these areas as Government reservations, which means the Mining Promotion Company will be responsible for searching and exploring where minerals are found,” the mines minister said.
Chitando stated the causes why EPOs were designated Government reservations and given to mining promotion companies stating that in most areas, minerals were discovered in various geological places.
“Some of these minerals are alluvial, which, when you mine, you find that they are not very far from the surface, but others are deep down.
“After explorations . . . it will be determined that these are alluvial deposits, and these are deposits that are deep and will need a lot of funding.
“The Government then determines who would occupy such because of the resources needed. For alluvial deposits, even small players can partake in those,” he said.
Exclusive rights to investors to search for specific minerals in an identified location are given through EPOs which are issued for a minimum of three years, and can be renewed to a maximum of six years.
Minister Chitando said the Cabinet allowed the company to partner with other companies in exploring for minerals but would take the lead so the Mining Promotion Company can be financed.
“Secondly, every year, the ministry receives an allocation from the annual budget, but the annual budget cannot cater to all the needs of the responsible department,” he said.
Chitando also adder EPOs, which are not reservation areas, would be opened to the public to apply for authority to explore.
Before the suspension of issuing new EPO licences, concerns had been raised that some EPO holders were keeping them for speculative purposes, without contributing to economic development through exploration or mining activities.
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